Biden does not want to be blackmailed in the debt limit dispute

In the dispute over the increase of the debt limit in the United States, President Joe Biden does not want to be pressured by right-wing Republican MPs. The US has never failed to pay its debts — and must continue to do so, Biden said in Washington Monday. The dispute is about preventing the imminent bankruptcy of the US government. In return, however, Republicans want to avoid essential parts of Biden’s political agenda.

House Speaker Kevin McCarthy wants Democrat Biden to agree to cuts in certain government spending, such as investments in climate protection. In exchange, the US debt limit will be increased by 1.5 trillion dollars (about 1.37 trillion euros). McCarthy himself is under great pressure from some arch-conservative Republicans, on whom he depends given the meager majority. Biden therefore spoke of the fact that MPs loyal to ex-President Donald Trump had “ruthlessly held the accompanying bill hostage”.

After a razor-thin majority in the House of Representatives, the Republican proposal now goes to the Democrat-led Senate, where it will not stand a chance. Biden had already announced that he would veto it if necessary. There would be default if the debt limit is not raised before the government runs out of money. According to the independent Budget Office of the US Congress, that could be between July and September. In this case, economic experts predict dire consequences for the US and the global economy. (sda/dpa)